I wonder if anyone has actually analyzed Lion's price point and determined whether they are making a profit on it? Apple's strategy has always been acknowledged to be focusing on the software to sell the hardware, since the hardware is where they have good profit margins. It wouldn't surprise me if $29 for Lion just covers the development costs or is even a lost leader. There is certainly software a lot less comprehensive than an entire OS selling for a lot more.

And physical products also have associated shipping and transportation costs. In Apple's case, their main concern is what better use of floor space can they be doing in Apple Stores. Apple is already phasing out most boxed software because they are comparatively low volume while taking up a lot of room. By stocking Lion USB keys, they are potentially losing revenue and profits compared to using that space to sell high volume iPhone 4 accessories for example.Reply

This is silly. Even with the flash drive Lion is still cheap as far as OS upgrades go and prices anyway are "political" here -- Apple is trying to convince users to try and use their online store and the $30 price is just a carrot dangling before the customers.

And you're free to buy the $30 version, get a $5 flash drive and copy it over yourself.

The cost of the physical media never has much to do with the price you're paying in the end for digital content (or software).Reply

"Given the company's push to digital downloads and its notorious stubbornness, Apple probably thinks we should be grateful to have the option at all."

Well, given how narcissistic Apple is, Apple probably thinks this article’s author is a complete retard. You know. Probably. As far as companies "think". And as much as they can be characterized as "stubborn" because they do things differently than random article authors on the internet expect, and, surprisingly, are raking in billions of dollars.

Literary term I'm coming up with is 'Personification'. I'm thinking I was looking for some other term but I suppose that will do.

Are you seriously criticizing the article or its writer for attributing 'thought' or 'stubbornness' to the Apple company? You do realize that the company is made up of people who think and are perfectly capable of being stubborn?Reply